Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish this without additional investments in manufacturing equipment. a. Calculate the required number of overtime hours per week and per day. Assume a 50- week year. b. Calculate the incremental cost of producing a chassis. Assume overtime is paid at 150% of labor cost of $50 per hour and that annual deprecation will remain at 2015 levels. See Table 4 for additional relevant information. Production Increase (12.5%) Production capacity Total Expected Capacity Number of Line Workers Number of Weeks/year Rate of Pay Direct Labor Number of hours/week Overtime hours/week Number of hours/day Overtime hours/day 33750 13.33 50*50*4 * 3750 30000 33750 4 50 $ 50.00 13.33 44.99 4.99 9.00 1.00 449887.5 10000 44.98875 Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish this without additional investments in manufacturing equipment. a. Calculate the required number of overtime hours per week and per day. Assume a 50- week year. b. Calculate the incremental cost of producing a chassis. Assume overtime is paid at 150% of labor cost of $50 per hour and that annual deprecation will remain at 2015 levels. See Table 4 for additional relevant information. Production Increase (12.5%) Production capacity Total Expected Capacity Number of Line Workers Number of Weeks/year Rate of Pay Direct Labor Number of hours/week Overtime hours/week Number of hours/day Overtime hours/day 33750 13.33 50*50*4 * 3750 30000 33750 4 50 $ 50.00 13.33 44.99 4.99 9.00 1.00 449887.5 10000 44.98875
Expert Answer:
Answer rating: 100% (QA)
based on the table given data is prepared below Production Incresase 125 3... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these finance questions
-
Max works x hours per week and has a 3-week vacation each year. Mindy works y hours per week and has a 4-week vacation each year. Express their combined number of work hours per year.
-
Will overtime premiums affect direct labor variances? If so, which ones?
-
Production workers for Kennedy Manufacturing Company provided 300 hours of labor in January and 600 hours in February. Kennedy expects to use 5,000 hours of labor during the year. The rental fee for...
-
Solve for y' y' = y = 71-x 3
-
In February 2001, a homeowner hired Jimmy Smith, a contractor claiming to employ a crew of thirty workers, to build a garage. The homeowner paid Smith $7,950 and agreed to make additional payments as...
-
What are the primary objectives of the marketing research report? Briefly discuss each objective and why they are so important.
-
\(7.2 \pi+8.6 \pi\) Perform the arithmetic operations without a calculator, if possible. If it is not possible, state why.
-
Forda Lumber Company owns a 7,000-acre tract of timber purchased in 2000 at a cost of $1,300 per acre. At the time of purchase, the land was estimated to have a value of $300 per acre without the...
-
Exercise 18-05 Suppose the comparative balance sheets of Nike, Inc. are presented here. Nike, Inc. Comparative Balance Sheets May 31 ($ in millions) Assets Current assets Property, plant, and...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
Suppose that the monthly cost, in dollars, of producing x chairs is C(x) 0.005x +0.07x + 16x + 700, and currently 90 chairs are produced monthly. a) What is the current monthly cost? b)What is the...
-
Problem (4): Use the information below to compute the probability of completing the project before 70 days. Activity Pred. a (opt) b (pes) 10 8 8 28 24 13 28 14 17 8 45 A BCDEFGH - Y J K None None...
-
Discuss how the five forces model can be used to analyze the pharmaceutical industry and determine the best strategies for success.
-
Parents wished to purchase a home that was to become the subject of the instant litigation. Defendant's parents were fully able to purchase the home through conventional financing. Defendant, a...
-
Discuss the various employment-at-will exceptions and explain how they protect employees from termination.
-
18. During your years as a wise college freshman you racked up $3,478 in credit card debt. The card's APR is 17.99%, and you plan to pay off the card with reasonable monthly payments of $150 per...
-
Metro City Mall requires its tenants to aign a loase that inclades a clave releasing Metro from liability in ile etent of monetary or phyaical injary no thatter who is at faclt. Coco's Chocolate...
-
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
-
Ab Landlord owns a dilapidated 30- year- old apartment building in Los Angeles. The net cash flow from renting the apartments last year was $ 200,000. She expects that inflation will cause the net...
-
Infantino Toyota is a car dealership that has been in business for 40 years at the same 20-acre location selling and servicing new and pre-owned (used) Toyotas. Two years ago Infantino Toyota...
-
Wine Distributors is a wholesaler of wine, buying from wineries and selling to wine stores. Three different white wines are sold: Chablis, Chardonnay, and Riesling. Here are budgeted and actual sales...
-
What would not be an abusive earnings management scheme according to the SEC? a. A big bath b. Channel stuffing c. Postponing repairs and maintenance expenses d. Cookie-jar accounting e. a. and c....
-
Which statement is false with respect to the PCAOB? a. PCAOB issues standards describing auditor's attestation requirements. b. D.W. Squires was a former chief auditor of PCAOB. c. PCAOB is a...
-
Select five of these alleged fraudsters and prepare a two-paragraph discussion of them. Outline their modus operandi. 1. Frank Abagnale 2. Jack Abramoff 3. Kobi Alexander 4. Eddie Antar 5. Jim Bakker...
Study smarter with the SolutionInn App